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One Hundred Sixth Congress

of theUnited States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Monday,

the twenty-fourth day of January, two thousand

An Act

To authorize a new trade and investment policy for sub-Saharan Africa, expandtrade benefits to the countries in the Caribbean Basin, renew the generalizedsystem of preferences, and reauthorize the trade adjustment assistance programs.

Be it enacted by the Senate and House of Representatives ofthe United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.This Act may be cited as the Trade andDevelopment Act of 2000.

(b) TABLE OF CONTENTS.The table of contents for this Actis as follows:

TITLE IEXTENSION OF CERTAIN TRADE BENEFITS TO SUB-SAHARANAFRICA

Subtitle ATrade Policy for Sub-Saharan AfricaSec. 101. Short title; table of contents.Sec. 102. Findings.Sec. 103. Statement of policy.Sec. 104. Eligibility requirements.Sec. 105. United States-Sub-Saharan Africa Trade and Economic Cooperation

Forum.Sec. 106. Reporting requirement.Sec. 107. Sub-Saharan Africa defined.

Subtitle BTrade Benefits

Sec. 111. Eligibility for certain benefits.Sec. 112. Treatment of certain textiles and apparel.Sec. 113. Protections against transshipment.Sec. 114. Termination.Sec. 115. Clerical amendments.Sec. 116. Free trade agreements with sub-Saharan African countries.Sec. 117. Assistant United States Trade Representative for African Affairs.

Subtitle CEconomic Development Related IssuesSec. 121. Sense of the Congress regarding comprehensive debt relief for the worlds

poorest countries.Sec. 122. Executive branch initiatives.Sec. 123. Overseas Private Investment Corporation initiatives.Sec. 124. Export-Import Bank initiatives.Sec. 125. Expansion of the United States and Foreign Commercial Service in sub-

Saharan Africa.Sec. 126. Donation of air traffic control equipment to eligible sub-Saharan African

countries.Sec. 127. Additional authorities and increased flexibility to provide assistance

under the Development Fund for Africa.Sec. 128. Assistance from United States private sector to prevent and reduce HIV/

AIDS in sub-Saharan Africa.Sec. 129. Sense of the Congress relating to HIV/AIDS crisis in sub-Saharan Africa.Sec. 130. Study on improving African agricultural practices.Sec. 131. Sense of the Congress regarding efforts to combat desertification in Africa

and other countries.

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TITLE IITRADE BENEFITS FOR CARIBBEAN BASIN

Subtitle ATrade Policy for Caribbean Basin Countries

Sec. 201. Short title.Sec. 202. Findings and policy.Sec. 203. Definitions.

Subtitle BTrade Benefits for Caribbean Basin Countries

Sec. 211. Temporary provisions to provide additional trade benefits to certain bene-ficiary countries.

Sec. 212. Duty-free treatment for certain beverages made with Caribbean rum.Sec. 213. Meetings of trade ministers and USTR.

TITLE IIINORMAL TRADE RELATIONS

Sec. 301. Normal trade relations for Albania.Sec. 302. Normal trade relations for Kyrgyzstan.

TITLE IVOTHER TRADE PROVISIONS

Sec. 401. Report on employment and trade adjustment assistance.Sec. 402. Trade adjustment assistance.Sec. 403. Reliquidation of certain nuclear fuel assemblies.Sec. 404. Reports to the Finance and Ways and Means committees.Sec. 405. Clarification of section 334 of the Uruguay Round Agreements Act.Sec. 406. Chief agricultural negotiator.Sec. 407. Revision of retaliation list or other remedial action.Sec. 408. Report on trade adjustment assistance for agricultural commodity pro-

ducers.Sec. 409. Agricultural trade negotiating objectives and consultations with Congress.Sec. 410. Entry procedures for foreign trade zone operations.Sec. 411. Goods made with forced or indentured child labor.Sec. 412. Worst forms of child labor.

TITLE VIMPORTS OF CERTAIN WOOL ARTICLES

Sec. 501. Temporary duty reductions.Sec. 502. Temporary duty suspensions.Sec. 503. Separate tariff line treatment for wool yarn and mens or boys suits and

suit-type jackets and trousers of worsted wool fabric.Sec. 504. Monitoring of market conditions and authority to modify tariff reductions.Sec. 505. Refund of duties paid on imports of certain wool articles.Sec. 506. Wool research, development, and promotion trust fund.

TITLE VIREVENUE PROVISIONS

Sec. 601. Application of denial of foreign tax credit regarding trade and investmentwith respect to certain foreign countries.

Sec. 602. Acceleration of cover over payments to Puerto Rico and Virgin Islands.

TITLE IEXTENSION OF CERTAINTRADE BENEFITS TO SUB-SAHARAN

AFRICA

Subtitle ATrade Policy for Sub-SaharanAfrica

SEC. 101. SHORT TITLE.

This title may be cited as the African Growth and OpportunityAct.

SEC. 102. FINDINGS.

Congress finds that(1) it is in the mutual interest of the United States and

the countries of sub-Saharan Africa to promote stable andsustainable economic growth and development in sub-Saharan

Africa;

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(2) the 48 countries of sub-Saharan Africa form a regionrichly endowed with both natural and human resources;

(3) sub-Saharan Africa represents a region of enormouseconomic potential and of enduring political significance to theUnited States;

(4) the region has experienced the strengthening of democ-racy as countries in sub-Saharan Africa have taken steps toencourage broader participation in the political process;

(5) certain countries in sub-Saharan Africa have increasedtheir economic growth rates, taken significant steps towardsliberalizing their economies, and made progress toward regional

economic integration that can have positive benefits for theregion;(6) despite those gains, the per capita income in sub-Saha-

ran Africa averages approximately $500 annually;(7) trade and investment, as the American experience has

shown, can represent powerful tools both for economic develop-ment and for encouraging broader participation in a politicalprocess in which political freedom can flourish;

(8) increased trade and investment flows have the greatestimpact in an economic environment in which trading partnerseliminate barriers to trade and capital flows and encouragethe development of a vibrant private sector that offers indi-vidual African citizens the freedom to expand their economicopportunities and provide for their families;

(9) offering the countries of sub-Saharan Africa enhanced

trade preferences will encourage both higher levels of tradeand direct investment in support of the positive economic andpolitical developments under way throughout the region; and

(10) encouraging the reciprocal reduction of trade andinvestment barriers in Africa will enhance the benefits of tradeand investment for the region as well as enhance commercialand political ties between the United States and sub-Saharan

Africa.

SEC. 103. STATEMENT OF POLICY.

Congress supports(1) encouraging increased trade and investment between

the United States and sub-Saharan Africa;(2) reducing tariff and nontariff barriers and other obstacles

to sub-Saharan African and United States trade;

(3) expanding United States assistance to sub-SaharanAfricas regional integration efforts;(4) negotiating reciprocal and mutually beneficial trade

agreements, including the possibility of establishing free tradeareas that serve the interests of both the United States andthe countries of sub-Saharan Africa;

(5) focusing on countries committed to the rule of law,economic reform, and the eradication of poverty;

(6) strengthening and expanding the private sector in sub-Saharan Africa, especially enterprises owned by women andsmall businesses;

(7) facilitating the development of civil societies and polit-ical freedom in sub-Saharan Africa;

(8) establishing a United States-Sub-Saharan Africa Tradeand Economic Cooperation Forum; and

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(9) the accession of the countries in sub-Saharan Africato the Organization for Economic Cooperation and Development(OECD) Convention on Combating Bribery of Foreign PublicOfficials in International Business Transactions.

SEC. 104. ELIGIBILITY REQUIREMENTS.

(a) IN GENERAL.The President is authorized to designate asub-Saharan African country as an eligible sub-Saharan Africancountry if the President determines that the country

(1) has established, or is making continual progress towardestablishing

(A) a market-based economy that protects private prop-erty rights, incorporates an open rules-based tradingsystem, and minimizes government interference in theeconomy through measures such as price controls, sub-sidies, and government ownership of economic assets;

(B) the rule of law, political pluralism, and the rightto due process, a fair trial, and equal protection underthe law;

(C) the elimination of barriers to United States tradeand investment, including by

(i) the provision of national treatment and meas-ures to create an environment conducive to domesticand foreign investment;

(ii) the protection of intellectual property; and(iii) the resolution of bilateral trade and invest-

ment disputes;(D) economic policies to reduce poverty, increase the

availability of health care and educational opportunities,expand physical infrastructure, promote the developmentof private enterprise, and encourage the formation of cap-ital markets through micro-credit or other programs;

(E) a system to combat corruption and bribery, suchas signing and implementing the Convention on CombatingBribery of Foreign Public Officials in International Busi-ness Transactions; and

(F) protection of internationally recognized workerrights, including the right of association, the right to orga-nize and bargain collectively, a prohibition on the use ofany form of forced or compulsory labor, a minimum age

for the employment of children, and acceptable conditionsof work with respect to minimum wages, hours of work,and occupational safety and health;(2) does not engage in activities that undermine United

States national security or foreign policy interests; and(3) does not engage in gross violations of internationally

recognized human rights or provide support for acts of inter-national terrorism and cooperates in international efforts toeliminate human rights violations and terrorist activities.(b) CONTINUING COMPLIANCE.If the President determines that

an eligible sub-Saharan African country is not making continualprogress in meeting the requirements described in subsection (a)(1),the President shall terminate the designation of the country madepursuant to subsection (a).

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SEC. 105. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECO-

NOMIC COOPERATION FORUM.

(a) DECLARATION OF POLICY.The President shall conveneannual high-level meetings between appropriate officials of theUnited States Government and officials of the governments of sub-Saharan African countries in order to foster close economic tiesbetween the United States and sub-Saharan Africa.

(b) ESTABLISHMENT.Not later than 12 months after the dateof the enactment of this Act, the President, after consulting withCongress and the governments concerned, shall establish a UnitedStates-Sub-Saharan Africa Trade and Economic Cooperation Forum

(in this section referred to as the Forum).(c) REQUIREMENTS.In creating the Forum, the President shallmeet the following requirements:

(1) The President shall direct the Secretary of Commerce,the Secretary of the Treasury, the Secretary of State, andthe United States Trade Representative to host the first annualmeeting with their counterparts from the governments of sub-Saharan African countries eligible under section 104, and thosesub-Saharan African countries that the President determinesare taking substantial positive steps towards meeting the eligi-bility requirements in section 104. The purpose of the meetingshall be to discuss expanding trade and investment relationsbetween the United States and sub-Saharan Africa and theimplementation of this title including encouraging joint ven-tures between small and large businesses. The President shallalso direct the Secretaries and the United States Trade Rep-resentative to invite to the meeting representatives from appro-priate sub-Saharan African regional organizations and govern-ment officials from other appropriate countries in sub-Saharan

Africa.(2)(A) The President, in consultation with the Congress,

shall encourage United States nongovernmental organizationsto host annual meetings with nongovernmental organizationsfrom sub-Saharan Africa in conjunction with the annualmeetings of the Forum for the purpose of discussing the issuesdescribed in paragraph (1).

(B) The President, in consultation with the Congress, shallencourage United States representatives of the private sectorto host annual meetings with representatives of the privatesector from sub-Saharan Africa in conjunction with the annualmeetings of the Forum for the purpose of discussing the issues

described in paragraph (1).(3) The President shall, to the extent practicable, meetwith the heads of governments of sub-Saharan African countrieseligible under section 104, and those sub-Saharan African coun-tries that the President determines are taking substantial posi-tive steps toward meeting the eligibility requirements in section104, not less than once every 2 years for the purpose of dis-cussing the issues described in paragraph (1). The first suchmeeting should take place not later than 12 months afterthe date of the enactment of this Act.(d) DISSEMINATION OF INFORMATION BY USIS.In order to

assist in carrying out the purposes of the Forum, the United StatesInformation Service shall disseminate regularly, through multiplemedia, economic information in support of the free market economicreforms described in this title.

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(e) HIV/AIDS EFFECT ON THE SUB-SAHARAN AFRICANWORKFORCE.In selecting issues of common interest to the UnitedStates-Sub-Saharan Africa Trade and Economic Cooperation Forum,the President shall instruct the United States delegates to theForum to promote a review by the Forum of the HIV/AIDS epidemicin each sub-Saharan African country and the effect of the HIV/

AIDS epidemic on economic development in each country.

SEC. 106. REPORTING REQUIREMENT.

The President shall submit to the Congress, not later than1 year after the date of the enactment of this Act, and annuallythereafter through 2008, a comprehensive report on the trade and

investment policy of the United States for sub-Saharan Africa,and on the implementation of this title and the amendments madeby this title.

SEC. 107. SUB-SAHARAN AFRICA DEFINED.

For purposes of this title, the terms sub-Saharan Africa,sub-Saharan African country, country in sub-Saharan Africa,and countries in sub-Saharan Africa refer to the following orany successor political entities:

Republic of Angola (Angola).Republic of Benin (Benin).Republic of Botswana (Botswana).Burkina Faso (Burkina).Republic of Burundi (Burundi).Republic of Cameroon (Cameroon).Republic of Cape Verde (Cape Verde).Central African Republic.Republic of Chad (Chad).Federal Islamic Republic of the Comoros (Comoros).Democratic Republic of Congo.Republic of the Congo (Congo).Republic of Co

te dIvoire (Co

te dIvoire).

Republic of Djibouti (Djibouti).Republic of Equatorial Guinea (Equatorial Guinea).State of Eritrea (Eritrea).Ethiopia.Gabonese Republic (Gabon).Republic of the Gambia (Gambia).Republic of Ghana (Ghana).Republic of Guinea (Guinea).Republic of Guinea-Bissau (Guinea-Bissau).

Republic of Kenya (Kenya).Kingdom of Lesotho (Lesotho).Republic of Liberia (Liberia).Republic of Madagascar (Madagascar).Republic of Malawi (Malawi).Republic of Mali (Mali).Islamic Republic of Mauritania (Mauritania).Republic of Mauritius (Mauritius).Republic of Mozambique (Mozambique).Republic of Namibia (Namibia).Republic of Niger (Niger).Federal Republic of Nigeria (Nigeria).Republic of Rwanda (Rwanda).Democratic Republic of Sao Tome

and Principe (Sao Tome

and Principe).

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Republic of Senegal (Senegal).Republic of Seychelles (Seychelles).Republic of Sierra Leone (Sierra Leone).Somalia.Republic of South Africa (South Africa).Republic of Sudan (Sudan).Kingdom of Swaziland (Swaziland).United Republic of Tanzania (Tanzania).Republic of Togo (Togo).Republic of Uganda (Uganda).Republic of Zambia (Zambia).

Republic of Zimbabwe (Zimbabwe).

Subtitle BTrade Benefits

SEC. 111. ELIGIBILITY FOR CERTAIN BENEFITS.

(a) IN GENERAL.Title V of the Trade Act of 1974 is amendedby inserting after section 506 the following new section:

SEC. 506A. DESIGNATION OF SUB-SAHARAN AFRICAN COUNTRIES FOR

CERTAIN BENEFITS.

(a) AUTHORITY TO DESIGNATE.(1) IN GENERAL.Notwithstanding any other provision of

law, the President is authorized to designate a country listedin section 107 of the African Growth and Opportunity Actas a beneficiary sub-Saharan African country eligible for thebenefits described in subsection (b)

(A) if the President determines that the country meetsthe eligibility requirements set forth in section 104 of that

Act, as such requirements are in effect on the date ofthe enactment of that Act; and

(B) subject to the authority granted to the Presidentunder subsections (a), (d), and (e) of section 502, if thecountry otherwise meets the eligibility criteria set forthin section 502.(2) MONITORING AND REVIEW OF CERTAIN COUNTRIES.

The President shall monitor, review, and report to Congressannually on the progress of each country listed in section 107of the African Growth and Opportunity Act in meeting therequirements described in paragraph (1) in order to determinethe current or potential eligibility of each country to be des-

ignated as a beneficiary sub-Saharan African country for pur-poses of this section. The Presidents determinations, and expla-nations of such determinations, with specific analysis of theeligibility requirements described in paragraph (1)(A), shallbe included in the annual report required by section 106 ofthe African Growth and Opportunity Act.

(3) CONTINUING COMPLIANCE.If the President determinesthat a beneficiary sub-Saharan African country is not makingcontinual progress in meeting the requirements described inparagraph (1), the President shall terminate the designationof that country as a beneficiary sub-Saharan African countryfor purposes of this section, effective on January 1 of theyear following the year in which such determination is made.(b) PREFERENTIAL TARIFF TREATMENT FOR CERTAIN ARTI-

CLES.

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(1) IN GENERAL.The President may provide duty-freetreatment for any article described in section 503(b)(1)(B)through (G) that is the growth, product, or manufacture ofa beneficiary sub-Saharan African country described in sub-section (a), if, after receiving the advice of the InternationalTrade Commission in accordance with section 503(e), the Presi-dent determines that such article is not import-sensitive inthe context of imports from beneficiary sub-Saharan Africancountries.

(2) RULES OF ORIGIN.The duty-free treatment providedunder paragraph (1) shall apply to any article described in

that paragraph that meets the requirements of section503(a)(2), except that(A) if the cost or value of materials produced in the

customs territory of the United States is included withrespect to that article, an amount not to exceed 15 percentof the appraised value of the article at the time it isentered that is attributed to such United States cost orvalue may be applied toward determining the percentagereferred to in subparagraph (A) of section 503(a)(2); and

(B) the cost or value of the materials included withrespect to that article that are produced in one or morebeneficiary sub-Saharan African countries shall be appliedin determining such percentage.

(c) BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES, ETC.For purposes of this title, the terms beneficiary sub-Saharan Afri-can country and beneficiary sub-Saharan African countries meana country or countries listed in section 107 of the African Growthand Opportunity Act that the President has determined is eligibleunder subsection (a) of this section..

(b) WAIVER OF COMPETITIVE NEED LIMITATION.Section503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C. 2463(c)(2)(D))is amended to read as follows:

(D) LEAST-DEVELOPED BENEFICIARY DEVELOPING COUN-TRIES AND BENEFICIARY SUB-SAHARAN AFRICAN COUN-TRIES.Subparagraph (A) shall not apply to any least-developed beneficiary developing country or any beneficiarysub-Saharan African country..

SEC. 112. TREATMENT OF CERTAIN TEXTILES AND APPAREL.

(a) PREFERENTIAL TREATMENT.Textile and apparel articlesdescribed in subsection (b) that are imported directly into the cus-

toms territory of the United States from a beneficiary sub-SaharanAfrican country described in section 506A(c) of the Trade Act of1974, shall enter the United States free of duty and free of anyquantitative limitations in accordance with the provisions set forthin subsection (b), if the country has satisfied the requirementsset forth in section 113.

(b) PRODUCTS COVERED.The preferential treatment describedin subsection (a) shall apply only to the following textile and apparelproducts:

(1) APPAREL ARTICLES ASSEMBLED IN BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES.Apparel articles assembled inone or more beneficiary sub-Saharan African countries fromfabrics wholly formed and cut in the United States, from yarnswholly formed in the United States, (including fabrics notformed from yarns, if such fabrics are classifiable under heading

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5602 or 5603 of the Harmonized Tariff Schedule of the UnitedStates and are wholly formed and cut in the United States)that are

(A) entered under subheading 9802.00.80 of the Har-monized Tariff Schedule of the United States; or

(B) entered under chapter 61 or 62 of the HarmonizedTariff Schedule of the United States, if, after suchassembly, the articles would have qualified for entry undersubheading 9802.00.80 of the Harmonized Tariff Scheduleof the United States but for the fact that the articleswere embroidered or subjected to stone-washing, enzyme-

washing, acid washing, perma-pressing, oven-baking,bleaching, garment-dyeing, screen printing, or other similarprocesses.(2) APPAREL ARTICLES CUT AND ASSEMBLED IN BENEFICIARY

SUB-SAHARAN AFRICAN COUNTRIES.Apparel articles cut in oneor more beneficiary sub-Saharan African countries from fabricwholly formed in the United States from yarns wholly formedin the United States, (including fabrics not formed from yarns,if such fabrics are classifiable under heading 5602 or 5603of the Harmonized Tariff Schedule of the United States andare wholly formed in the United States) if such articles areassembled in one or more beneficiary sub-Saharan African coun-tries with thread formed in the United States.

(3) APPAREL ARTICLES ASSEMBLED FROM REGIONAL ANDOTHER FABRIC.Apparel articles wholly assembled in one or

more beneficiary sub-Saharan African countries from fabricwholly formed in one or more beneficiary sub-Saharan Africancountries from yarn originating either in the United Statesor one or more beneficiary sub-Saharan African countries(including fabrics not formed from yarns, if such fabrics areclassifiable under heading 5602 or 5603 of the HarmonizedTariff Schedule of the United States and are wholly formedand cut in one or more beneficiary sub-Saharan African coun-tries), subject to the following:

(A) LIMITATIONS ON BENEFITS.(i) IN GENERAL.Preferential treatment under this

paragraph shall be extended in the 1-year period begin-ning on October 1, 2000, and in each of the sevensucceeding 1-year periods, to imports of apparel articlesin an amount not to exceed the applicable percentage

of the aggregate square meter equivalents of allapparel articles imported into the United States inthe preceding 12-month period for which data are avail-able.

(ii) APPLICABLE PERCENTAGE.For purposes of thissubparagraph, the term applicable percentage means1.5 percent for the 1-year period beginning October1, 2000, increased in each of the seven succeeding1-year periods by equal increments, so that for theperiod beginning October 1, 2007, the applicablepercentage does not exceed 3.5 percent.(B) SPECIAL RULE FOR LESSER DEVELOPED COUNTRIES.

(i) IN GENERAL.Subject to subparagraph (A), pref-erential treatment shall be extended through Sep-tember 30, 2004, for apparel articles wholly assembled

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in one or more lesser developed beneficiary sub-Saha-ran African countries regardless of the country of originof the fabric used to make such articles.

(ii) LESSER DEVELOPED BENEFICIARY SUB-SAHARANAFRICAN COUNTRY.For purposes of this subparagraphthe term lesser developed beneficiary sub-Saharan

African country means a beneficiary sub-Saharan Afri-can country that had a per capita gross nationalproduct of less than $1,500 a year in 1998, as measuredby the World Bank.(C) SURGE MECHANISM.

(i) IMPORT MONITORING.The Secretary of Com-merce shall monitor imports of articles described inthis paragraph on a monthly basis to determine ifthere has been a surge in imports of such articles.In order to permit public access to preliminary inter-national trade data and to facilitate the early identi-fication of potentially disruptive import surges, theDirector of the Office of Management and Budget maygrant an exception to the publication dates establishedfor the release of data on United States internationaltrade in covered articles, if the Director notifies Con-gress of the early release of the data.

(ii) DETERMINATION OF DAMAGE OR THREATTHEREOF.Whenever the Secretary of Commercedetermines, based on the data described in clause (i),or pursuant to a written request made by an interestedparty, that there has been a surge in imports of anarticle described in this paragraph from a beneficiarysub-Saharan African country, the Secretary shall deter-mine whether such article from such country is beingimported in such increased quantities as to causeserious damage, or threat thereof, to the domesticindustry producing a like or directly competitivearticle. If the Secretarys determination is affirmative,the President shall suspend the duty-free treatmentprovided for such article under this paragraph. If theinquiry is initiated at the request of an interestedparty, the Secretary shall make the determinationwithin 60 days after the date of the request.

(iii) FACTORS TO CONSIDER.In determiningwhether a domestic industry has been seriously dam-aged, or is threatened with serious damage, the Sec-retary shall examine the effect of the imports on rel-evant economic indicators such as domestic production,sales, market share, capacity utilization, inventories,employment, profits, exports, prices, and investment.

(iv) PROCEDURE.(I) INITIATION.The Secretary of Commerce

shall initiate an inquiry within 10 days afterreceiving a written request and supportinginformation for an inquiry from an interestedparty. Notice of initiation of an inquiry shall bepublished in the Federal Register.

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(II) PARTICIPATION BY INTERESTED PARTIES.The Secretary of Commerce shall establish proce-dures to ensure participation in the inquiry byinterested parties.

(III) NOTICE OF DETERMINATION.The Sec-retary shall publish the determination describedin clause (ii) in the Federal Register.

(IV) INFORMATION AVAILABLE.If relevantinformation is not available on the record or anyparty withholds information that has beenrequested by the Secretary, the Secretary shall

make the determination on the basis of the factsavailable. When the Secretary relies on informa-tion submitted in the inquiry as facts available,the Secretary shall, to the extent practicable,corroborate the information from independentsources that are reasonably available to the Sec-retary.(v) INTERESTED PARTY.For purposes of this

subparagraph, the term interested party means anyproducer of a like or directly competitive article, acertified union or recognized union or group of workerswhich is representative of an industry engaged in themanufacture, production, or sale in the United Statesof a like or directly competitive article, a trade orbusiness association representing producers or sellersof like or directly competitive articles, producersengaged in the production of essential inputs for likeor directly competitive articles, a certified union orgroup of workers which is representative of an industryengaged in the manufacture, production, or sale ofessential inputs for the like or directly competitivearticle, or a trade or business association representingcompanies engaged in the manufacture, production,or sale of such essential inputs.

(4) SWEATERS KNIT-TO-SHAPE FROM CASHMERE OR MERINOWOOL.

(A) CASHMERE.Sweaters, in chief weight of cashmere,knit-to-shape in one or more beneficiary sub-Saharan Afri-can countries and classifiable under subheading 6110.10of the Harmonized Tariff Schedule of the United States.

(B) MERINO WOOL.Sweaters, 50 percent or more by

weight of wool measuring 18.5 microns in diameter orfiner, knit-to-shape in one or more beneficiary sub-SaharanAfrican countries.(5) APPAREL ARTICLES WHOLLY ASSEMBLED FROM FABRIC

OR YARN NOT AVAILABLE IN COMMERCIAL QUANTITIES IN THE

UNITED STATES.(A) IN GENERAL.Apparel articles that are both cut

(or knit-to-shape) and sewn or otherwise assembled in oneor more beneficiary sub-Saharan African countries, fromfabric or yarn that is not formed in the United Statesor a beneficiary sub-Saharan African country, to the extentthat apparel articles of such fabrics or yarns would beeligible for preferential treatment, without regard to thesource of the fabric or yarn, under Annex 401 to theNAFTA.

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(B) ADDITIONAL APPAREL ARTICLES.At the request ofany interested party and subject to the following require-ments, the President is authorized to proclaim the treat-ment provided under subparagraph (A) for yarns or fabricsnot described in subparagraph (A) if

(i) the President determines that such yarns orfabrics cannot be supplied by the domestic industryin commercial quantities in a timely manner;

(ii) the President has obtained advice regardingthe proposed action from the appropriate advisory com-mittee established under section 135 of the Trade Act

of 1974 (19 U.S.C. 2155) and the United States Inter-national Trade Commission;(iii) within 60 calendar days after the request,

the President has submitted a report to the Committeeon Ways and Means of the House of Representativesand the Committee on Finance of the Senate thatsets forth

(I) the action proposed to be proclaimed andthe reasons for such action; and

(II) the advice obtained under clause (ii);(iv) a period of 60 calendar days, beginning with

the first day on which the President has met therequirements of subclauses (I) and (II) of clause (iii),has expired; and

(v) the President has consulted with such commit-tees regarding the proposed action during the periodreferred to in clause (iii).

(6) HANDLOOMED, HANDMADE, AND FOLKLORE ARTICLES.A handloomed, handmade, or folklore article of a beneficiarysub-Saharan African country or countries that is certified assuch by the competent authority of such beneficiary countryor countries. For purposes of this paragraph, the President,after consultation with the beneficiary sub-Saharan Africancountry or countries concerned, shall determine which, if any,particular textile and apparel goods of the country (or countries)shall be treated as being handloomed, handmade, or folklorearticles.(c) TREATMENT OF QUOTAS ON TEXTILE AND APPAREL IMPORTS

FROM KENYA AND MAURITIUS.The President shall eliminate theexisting quotas on textile and apparel articles imported into theUnited States

(1) from Kenya within 30 days after that country adoptsan effective visa system to prevent unlawful transshipmentof textile and apparel articles and the use of counterfeit docu-ments relating to the importation of the articles into the UnitedStates; and

(2) from Mauritius within 30 days after that country adoptssuch a visa system.

The Customs Service shall provide the necessary technical assist-ance to Kenya and Mauritius in the development and implementa-tion of the visa systems.

(d) SPECIAL RULES.(1) FINDINGS AND TRIMMINGS.

(A) GENERAL RULE.An article otherwise eligible forpreferential treatment under this section shall not be ineli-gible for such treatment because the article contains

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findings or trimmings of foreign origin, if the value ofsuch findings and trimmings do not exceed 25 percentof the cost of the components of the assembled article.Examples of findings and trimmings are sewing thread,hooks and eyes, snaps, buttons, bow buds, decorativelace trim, elastic strips, and zippers, including zipper tapesand labels. Elastic strips are considered findings or trim-mings only if they are each less than 1 inch in widthand used in the production of brassieres.

(B) CERTAIN INTERLININGS.(i) GENERAL RULE.An article otherwise eligible

for preferential treatment under this section shall notbe ineligible for such treatment because the articlecontains certain interlinings of foreign origin, if thevalue of such interlinings (and any findings and trim-mings) does not exceed 25 percent of the cost of thecomponents of the assembled article.

(ii) INTERLININGS DESCRIBED.Interlinings eligiblefor the treatment described in clause (i) include onlya chest type plate, a hymo piece, or sleeve header,of woven or weft-inserted warp knit construction andof coarse animal hair or man-made filaments.

(iii) TERMINATION OF TREATMENT.The treatmentdescribed in this subparagraph shall terminate if thePresident makes a determination that United Statesmanufacturers are producing such interlinings in the

United States in commercial quantities.(C) EXCEPTION.In the case of an article describedin subsection (b)(2), sewing thread shall not be treatedas findings or trimmings under subparagraph (A).(2) DE MINIMIS RULE.An article otherwise eligible for

preferential treatment under this section shall not be ineligiblefor such treatment because the article contains fibers or yarnsnot wholly formed in the United States or one or more bene-ficiary sub-Saharan African countries if the total weight ofall such fibers and yarns is not more than 7 percent of thetotal weight of the article.(e) DEFINITIONS.In this section and section 113:

(1) AGREEMENT ON TEXTILES AND CLOTHING.The termAgreement on Textiles and Clothing means the Agreementon Textiles and Clothing referred to in section 101(d)(4) of

the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).(2) BENEFICIARY SUB-SAHARAN AFRICAN COUNTRY, ETC.The terms beneficiary sub-Saharan African country andbeneficiary sub-Saharan African countries have the samemeaning as such terms have under section 506A(c) of the Trade

Act of 1974.(3) NAFTA.The term NAFTA means the North Amer-

ican Free Trade Agreement entered into between the UnitedStates, Mexico, and Canada on December 17, 1992.(f) EFFECTIVE DATE.This section takes effect on October 1,

2000, and shall remain in effect through September 30, 2008.

SEC. 113. PROTECTIONS AGAINST TRANSSHIPMENT.

(a) PREFERENTIAL TREATMENT CONDITIONED ON ENFORCEMENTMEASURES.

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(1) IN GENERAL.The preferential treatment under section112(a) shall not be provided to textile and apparel articlesthat are imported from a beneficiary sub-Saharan Africancountry unless that country

(A) has adopted an effective visa system, domestic laws,and enforcement procedures applicable to covered articlesto prevent unlawful transshipment of the articles and theuse of counterfeit documents relating to the importationof the articles into the United States;

(B) has enacted legislation or promulgated regulationsthat would permit United States Customs Service

verification teams to have the access necessary to inves-tigate thoroughly allegations of transshipment throughsuch country;

(C) agrees to report, on a timely basis, at the requestof the United States Customs Service, on the total exportsfrom and imports into that country of covered articles,consistent with the manner in which the records are keptby that country;

(D) will cooperate fully with the United States toaddress and take action necessary to prevent circumventionas provided in Article 5 of the Agreement on Textilesand Clothing;

(E) agrees to require all producers and exporters ofcovered articles in that country to maintain completerecords of the production and the export of covered articles,including materials used in the production, for at least2 years after the production or export (as the case maybe); and

(F) agrees to report, on a timely basis, at the requestof the United States Customs Service, documentation estab-lishing the country of origin of covered articles as usedby that country in implementing an effective visa system.(2) COUNTRY OF ORIGIN DOCUMENTATION.For purposes

of paragraph (1)(F), documentation regarding the country oforigin of the covered articles includes documentation such asproduction records, information relating to the place of produc-tion, the number and identification of the types of machineryused in production, the number of workers employed in produc-tion, and certification from both the manufacturer and theexporter.(b) CUSTOMS PROCEDURES AND ENFORCEMENT.

(1) IN GENERAL.(A) REGULATIONS.Any importer that claims pref-erential treatment under section 112 shall comply withcustoms procedures similar in all material respects to therequirements of Article 502(1) of the NAFTA as imple-mented pursuant to United States law, in accordance withregulations promulgated by the Secretary of the Treasury.

(B) DETERMINATION.(i) IN GENERAL.In order to qualify for the pref-

erential treatment under section 112 and for a Certifi-cate of Origin to be valid with respect to any articlefor which such treatment is claimed, there shall bein effect a determination by the President that eachcountry described in clause (ii)

(I) has implemented and follows; or

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(II) is making substantial progress towardimplementing and following,

procedures and requirements similar in all materialrespects to the relevant procedures and requirementsunder chapter 5 of the NAFTA.

(ii) COUNTRY DESCRIBED.A country is describedin this clause if it is a beneficiary sub-Saharan Africancountry

(I) from which the article is exported; or(II) in which materials used in the production

of the article originate or in which the article

or such materials, undergo production that contrib-utes to a claim that the article is eligible for pref-erential treatment.

(2) CERTIFICATE OF ORIGIN.The Certificate of Origin thatotherwise would be required pursuant to the provisions of para-graph (1) shall not be required in the case of an article importedunder section 112 if such Certificate of Origin would not berequired under Article 503 of the NAFTA (as implementedpursuant to United States law), if the article were importedfrom Mexico.

(3) PENALTIES FOR EXPORTERS.If the President deter-mines, based on sufficient evidence, that an exporter hasengaged in transshipment as defined in paragraph (4), thenthe President shall deny for a period of 5 years all benefitsunder section 112 to such exporter, any successor of such

exporter, and any other entity owned or operated by the prin-cipal of the exporter.(4) TRANSSHIPMENT DESCRIBED.Transshipment within the

meaning of this subsection has occurred when preferentialtreatment for a textile or apparel article under this Act hasbeen claimed on the basis of material false information con-cerning the country of origin, manufacture, processing, orassembly of the article or any of its components. For purposesof this paragraph, false information is material if disclosureof the true information would mean or would have meantthat the article is or was ineligible for preferential treatmentunder section 112.

(5) MONITORING AND REPORTS TO CONGRESS.The CustomsService shall monitor and the Commissioner of Customs shallsubmit to Congress, not later than March 31 of each year,

a report on the effectiveness of the visa systems and theimplementation of legislation and regulations described in sub-section (a) and on measures taken by countries in sub-Saharan

Africa which export textiles or apparel to the United Statesto prevent circumvention as described in Article 5 of the Agree-ment on Textiles and Clothing.(c) CUSTOMS SERVICE ENFORCEMENT.The Customs Service

shall(1) make available technical assistance to the beneficiary

sub-Saharan African countries(A) in the development and implementation of visa

systems, legislation, and regulations described in sub-section (a)(1)(A); and

(B) to train their officials in anti-transshipmentenforcement;

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(2) send production verification teams to at least four bene-ficiary sub-Saharan African countries each year; and

(3) to the extent feasible, place beneficiary sub-SaharanAfrican countries on the Electronic Visa (ELVIS) program.(d) AUTHORIZATION OF APPROPRIATIONS.There is authorized

to be appropriated to carry out subsection (c) the sum of $5,894,913.

SEC. 114. TERMINATION.

Title V of the Trade Act of 1974 is amended by insertingafter section 506A the following new section:

SEC. 506B. TERMINATION OF BENEFITS FOR SUB-SAHARAN AFRICAN

COUNTRIES.

In the case of a beneficiary sub-Saharan African country,as defined in section 506A(c), duty-free treatment provided underthis title shall remain in effect through September 30, 2008..

SEC. 115. CLERICAL AMENDMENTS.

The table of contents for title V of the Trade Act of 1974is amended by inserting after the item relating to section 506the following new items:

Sec. 506A. Designation of sub-Saharan African countries for certain benefits.

Sec. 506B. Termination of benefits for sub-Saharan African countries..

SEC. 116. FREE TRADE AGREEMENTS WITH SUB-SAHARAN AFRICAN

COUNTRIES.

(a) DECLARATION OF POLICY.Congress declares that free tradeagreements should be negotiated, where feasible, with interestedcountries in sub-Saharan Africa, in order to serve as the catalystfor increasing trade between the United States and sub-Saharan

Africa and increasing private sector investment in sub-SaharanAfrica.

(b) PLAN REQUIREMENT.(1) IN GENERAL.The President, taking into account the

provisions of the treaty establishing the African EconomicCommunity and the willingness of the governments of sub-Saharan African countries to engage in negotiations to enterinto free trade agreements, shall develop a plan for the purposeof negotiating and entering into one or more trade agreementswith interested beneficiary sub-Saharan African countries.

(2) ELEMENTS OF PLAN.The plan shall include the fol-

lowing: (A) The specific objectives of the United States withrespect to negotiations described in paragraph (1) and asuggested timetable for achieving those objectives.

(B) The benefits to both the United States and therelevant sub-Saharan African countries with respect to theapplicable free trade agreement or agreements.

(C) A mutually agreed-upon timetable for the negotia-tions.

(D) The implications for and the role of regional andsub-regional organizations in sub-Saharan Africa withrespect to such free trade agreement or agreements.

(E) Subject matter anticipated to be covered by thenegotiations and United States laws, programs, and poli-cies, as well as the laws of participating eligible African

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countries and existing bilateral and multilateral and eco-nomic cooperation and trade agreements, that may beaffected by the agreement or agreements.

(F) Procedures to ensure the following:(i) Adequate consultation with the Congress and

the private sector during the negotiations.(ii) Consultation with the Congress regarding all

matters relating to implementation of the agreementor agreements.

(iii) Approval by the Congress of the agreementor agreements.

(iv) Adequate consultations with the relevant Afri-can governments and African regional and subregionalintergovernmental organizations during the negotia-tion of the agreement or agreements.

(c) REPORTING REQUIREMENT.Not later than 12 months afterthe date of the enactment of this Act, the President shall prepareand transmit to the Congress a report containing the plan developedpursuant to subsection (b).

SEC. 117. ASSISTANT UNITED STATES TRADE REPRESENTATIVE FOR

AFRICAN AFFAIRS.

It is the sense of the Congress that(1) the position of Assistant United States Trade Represent-

ative for African Affairs is integral to the United States commit-ment to increasing United States-sub-Saharan African tradeand investment;

(2) the position of Assistant United States Trade Represent-ative for African Affairs should be maintained within the Officeof the United States Trade Representative to direct and coordi-nate interagency activities on United States-Africa trade policyand investment matters and serve as

(A) a primary point of contact in the executive branchfor those persons engaged in trade between the UnitedStates and sub-Saharan Africa; and

(B) the chief advisor to the United States Trade Rep-resentative on issues of trade and investment with Africa;and(3) the United States Trade Representative should have

adequate funding and staff to carry out the duties of the Assist-ant United States Trade Representative for African Affairsdescribed in paragraph (2), subject to the availability of appro-

priations.

Subtitle CEconomic DevelopmentRelated Issues

SEC. 121. SENSE OF THE CONGRESS REGARDING COMPREHENSIVE

DEBT RELIEF FOR THE WORLDS POOREST COUNTRIES.

(a) FINDINGS.Congress makes the following findings:(1) The burden of external debt has become a major impedi-

ment to economic growth and poverty reduction in many ofthe worlds poorest countries.

(2) Until recently, the United States Government and otherofficial creditors sought to address this problem by reschedulingloans and in some cases providing limited debt reduction.

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(3) Despite such efforts, the cumulative debt of many ofthe worlds poorest countries continued to grow beyond theircapacity to repay.

(4) In 1997, the Group of Seven, the World Bank, andthe International Monetary Fund adopted the Heavily IndebtedPoor Countries Initiative (HIPC), a commitment by the inter-national community that all multilateral and bilateral creditors,acting in a coordinated and concerted fashion, would reducepoor country debt to a sustainable level.

(5) The HIPC Initiative is currently undergoing reformsto address concerns raised about country conditionality, the

amount of debt forgiven, and the allocation of savings realizedthrough the debt forgiveness program to ensure that the Initia-tive accomplishes the goals of economic growth and povertyalleviation in the worlds poorest countries.(b) SENSE OF THE CONGRESS.It is the sense of the Congress

that(1) Congress and the President should work together, with-

out undue delay and in concert with the international commu-nity, to make comprehensive debt relief available to the worldspoorest countries in a manner that promotes economic growthand poverty alleviation;

(2) this program of bilateral and multilateral debt reliefshould be designed to strengthen and expand the private sector,encourage increased trade and investment, support the develop-ment of free markets, and promote broad-scale economic growth

in beneficiary countries;(3) this program of debt relief should also support theadoption of policies to alleviate poverty and to ensure thatbenefits are shared widely among the population, such asthrough initiatives to advance education, improve health, com-bat AIDS, and promote clean water and environmental protec-tion;

(4) these debt relief agreements should be designed andimplemented in a transparent manner and with the broadparticipation of the citizenry of the debtor country and shouldensure that country circumstances are adequately taken intoaccount;

(5) no country should receive the benefits of debt reliefif that country does not cooperate with the United States onterrorism or narcotics enforcement, is a gross violator of the

human rights of its citizens, or is engaged in conflict or spendsexcessively on its military; and(6) in order to prevent adverse impact on a key industry

in many developing countries, the International Monetary Fundmust mobilize its own resources for providing debt relief toeligible countries without allowing gold to reach the openmarket, or otherwise adversely affecting the market price ofgold.

SEC. 122. EXECUTIVE BRANCH INITIATIVES.

(a) STATEMENT OF THE CONGRESS.The Congress recognizesthat the stated policy of the executive branch in 1997, the Partner-ship for Growth and Opportunity in Africa initiative, is a steptoward the establishment of a comprehensive trade and develop-ment policy for sub-Saharan Africa. It is the sense of the Congress

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that this Partnership is a companion to the policy goals set forthin this title.

(b) TECHNICAL ASSISTANCE TO PROMOTE ECONOMIC REFORMSAND DEVELOPMENT.In addition to continuing bilateral and multi-lateral economic and development assistance, the President shalltarget technical assistance toward

(1) developing relationships between United States firmsand firms in sub-Saharan Africa through a variety of businessassociations and networks;

(2) providing assistance to the governments of sub-SaharanAfrican countries to

(A) liberalize trade and promote exports;(B) bring their legal regimes into compliance with thestandards of the World Trade Organization in conjunctionwith membership in that Organization;

(C) make financial and fiscal reforms; and(D) promote greater agribusiness linkages;

(3) addressing such critical agricultural policy issues asmarket liberalization, agricultural export development, andagribusiness investment in processing and transporting agricul-tural commodities;

(4) increasing the number of reverse trade missions togrowth-oriented countries in sub-Saharan Africa;

(5) increasing trade in services; and(6) encouraging greater sub-Saharan African participation

in future negotiations in the World Trade Organization onservices and making further commitments in their schedulesto the General Agreement on Trade in Services in order toencourage the removal of tariff and nontariff barriers.

SEC. 123. OVERSEAS PRIVATE INVESTMENT CORPORATION INITIA-

TIVES.

(a) INITIATION OF FUNDS.It is the sense of the Congressthat the Overseas Private Investment Corporation should exercisethe authorities it has to initiate an equity fund or equity fundsin support of projects in the countries in sub-Saharan Africa, inaddition to the existing equity fund for sub-Saharan Africa createdby the Corporation.

(b) STRUCTURE AND TYPES OF FUNDS.(1) STRUCTURE.Each fund initiated under subsection (a)

should be structured as a partnership managed by professionalprivate sector fund managers and monitored on a continuing

basis by the Corporation.(2) CAPITALIZATION.Each fund should be capitalized witha combination of private equity capital, which is not guaranteedby the Corporation, and debt for which the Corporation providesguaranties.

(3) INFRASTRUCTURE FUND.One or more of the funds,with combined assets of up to $500,000,000, should be usedin support of infrastructure projects in countries of sub-Saharan

Africa.(4) EMPHASIS.The Corporation shall ensure that the funds

are used to provide support in particular to women entre-preneurs and to innovative investments that expand opportuni-ties for women and maximize employment opportunities forpoor individuals.(c) OVERSEAS PRIVATE INVESTMENT CORPORATION.

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(1) INVESTMENT ADVISORY COUNCIL.Section 233 of theForeign Assistance Act of 1961 is amended by adding at theend the following:(e) INVESTMENT ADVISORY COUNCIL.The Board shall take

prompt measures to increase the loan, guarantee, and insuranceprograms, and financial commitments, of the Corporation in sub-Saharan Africa, including through the use of an investment advisorycouncil to assist the Board in developing and implementing policies,programs, and financial instruments with respect to sub-Saharan

Africa. In addition, the investment advisory council shall makerecommendations to the Board on how the Corporation can facilitategreater support by the United States for trade and investmentwith and in sub-Saharan Africa. The investment advisory councilshall terminate 4 years after the date of the enactment of thissubsection..

(2) REPORTS TO CONGRESS.Within 6 months after thedate of the enactment of this Act, and annually for each ofthe 4 years thereafter, the Board of Directors of the OverseasPrivate Investment Corporation shall submit to Congress areport on the steps that the Board has taken to implementsection 233(e) of the Foreign Assistance Act of 1961 (as addedby paragraph (1)) and any recommendations of the investmentadvisory council established pursuant to such section.

SEC. 124. EXPORT-IMPORT BANK INITIATIVES.

(a) SENSE OF THE CONGRESS.It is the sense of the Congressthat the Board of Directors of the Bank shall continue to take

comprehensive measures, consistent with the credit standardsotherwise required by law, to promote the expansion of the Banksfinancial commitments in sub-Saharan Africa under the loan, guar-antee and insurance programs of the Bank.

(b) SUB-SAHARAN AFRICA ADVISORY COMMITTEE.The sub-Saharan Africa Advisory Committee (SAAC) is to be commendedfor aiding the Bank in advancing the economic partnership betweenthe United States and the nations of sub-Saharan Africa by doublingthe number of sub-Saharan African countries in which the Bankis open for traditional financing and by increasing by tenfold theBanks support for sales to sub-Saharan Africa from fiscal year1998 to fiscal year 1999. The Board of Directors of the Bankand its staff shall continue to review carefully the sub-Saharan

Africa Advisory Committee recommendations on the developmentand implementation of new and innovative policies and programsdesigned to promote the Banks expansion in sub-Saharan Africa.

SEC. 125. EXPANSION OF THE UNITED STATES AND FOREIGN COMMER-

CIAL SERVICE IN SUB-SAHARAN AFRICA.

(a) FINDINGS.The Congress makes the following findings:(1) The United States and Foreign Commercial Service

(hereafter in this section referred to as the CommercialService) plays an important role in helping United Statesbusinesses identify export opportunities and develop reliablesources of information on commercial prospects in foreign coun-tries.

(2) During the 1980s, the presence of the CommercialService in sub-Saharan Africa consisted of 14 professionalsproviding services in eight countries. By early 1997, that pres-ence had been reduced by half to seven professionals in onlyfour countries.

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(3) Since 1997, the Department of Commerce has slowlybegun to increase the presence of the Commercial Service insub-Saharan Africa, adding five full-time officers to establishedposts.

(4) Although the Commercial Service Officers in these coun-tries have regional responsibilities, this kind of coverage doesnot adequately service the needs of United States businessesattempting to do business in sub-Saharan Africa.

(5) The Congress has, on several occasions, encouragedthe Commercial Service to focus its resources and efforts incountries or regions in Europe or Asia to promote greater

United States export activity in those markets, and similarencouragement should be provided for countries in sub-SaharanAfrica as well.

(6) Because market information is not widely availablein many sub-Saharan African countries, the presence of addi-tional Commercial Service Officers and resources can play asignificant role in assisting United States businesses in marketsin those countries.(b) APPOINTMENTS.Subject to the availability of appropria-

tions, by not later than December 31, 2001, the Secretary of Com-merce, acting through the Assistant Secretary of Commerce andDirector General of the United States and Foreign CommercialService, shall take steps to ensure that

(1) at least 20 full-time Commercial Service employeesare stationed in sub-Saharan Africa; and

(2) full-time Commercial Service employees are stationedin not less than 10 different sub-Saharan African countries.(c) INITIATIVE FOR SUB-SAHARANAFRICA.In order to encourage

the export of United States goods and services to sub-SaharanAfrican countries, the International Trade Administration shallmake a special effort to

(1) identify United States goods and services which arethe best prospects for export by United States companies tosub-Saharan Africa;

(2) identify, where appropriate, tariff and nontariff barriersthat are preventing or hindering sales of United States goodsand services to, or the operation of United States companiesin, sub-Saharan Africa;

(3) hold discussions with appropriate authorities in sub-Saharan Africa on the matters described in paragraphs (1)and (2) with a view to securing increased market access for

United States exporters of goods and services;(4) identify current resource allocations and personnellevels in sub-Saharan Africa for the Commercial Service andconsider plans for the deployment of additional resources orpersonnel to that region; and

(5) make available to the public, through printed and elec-tronic means of communication, the information derived pursu-ant to paragraphs (1) through (4) for each of the 4 yearsafter the date of the enactment of this Act.

SEC. 126. DONATION OF AIR TRAFFIC CONTROL EQUIPMENT TO

ELIGIBLE SUB-SAHARAN AFRICAN COUNTRIES.

It is the sense of the Congress that, to the extent appropriate,the United States Government should make every effort to donateto governments of sub-Saharan African countries determined to

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be eligible under section 104 air traffic control equipment thatis no longer in use, including appropriate related reimbursabletechnical assistance.

SEC. 127. ADDITIONAL AUTHORITIES AND INCREASED FLEXIBILITY

TO PROVIDE ASSISTANCE UNDER THE DEVELOPMENT

FUND FOR AFRICA.

(a) USE OF SUSTAINABLE DEVELOPMENT ASSISTANCE TO SUP-PORT FURTHER ECONOMIC GROWTH.It is the sense of the Congressthat sustained economic growth in sub-Saharan Africa dependsin large measure upon the development of a receptive environment

for trade and investment, and that to achieve this objective theUnited States Agency for International Development should con-tinue to support programs which help to create this environment.Investments in human resources, development, and implementationof free market policies, including policies to liberalize agriculturalmarkets and improve food security, and the support for the ruleof law and democratic governance should continue to be encouragedand enhanced on a bilateral and regional basis.

(b) DECLARATIONS OF POLICY.The Congress makes the fol-lowing declarations:

(1) The Development Fund for Africa established underchapter 10 of part I of the Foreign Assistance Act of 1961(22 U.S.C. 2293 et seq.) has been an effective tool in providingdevelopment assistance to sub-Saharan Africa since 1988.

(2) The Development Fund for Africa will complement theother provisions of this title and lay a foundation for increasedtrade and investment opportunities between the United Statesand sub-Saharan Africa.

(3) Assistance provided through the Development Fundfor Africa will continue to support programs and activitiesthat promote the long term economic development of sub-Saha-ran Africa, such as programs and activities relating to thefollowing:

(A) Strengthening primary and vocational educationsystems, especially the acquisition of middle-level technicalskills for operating modern private businesses and theintroduction of college level business education, includingthe study of international business, finance, and stockexchanges.

(B) Strengthening health care systems.(C) Supporting democratization, good governance and

civil society and conflict resolution efforts.(D) Increasing food security by promoting the expan-sion of agricultural and agriculture-based industrialproduction and productivity and increasing real incomesfor poor individuals.

(E) Promoting an enabling environment for privatesector-led growth through sustained economic reform,privatization programs, and market-led economic activities.

(F) Promoting decentralization and local participationin the development process, especially linking the ruralproduction sectors and the industrial and market centersthroughout Africa.

(G) Increasing the technical and managerial capacityof sub-Saharan African individuals to manage the economyof sub-Saharan Africa.

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(H) Ensuring sustainable economic growth throughenvironmental protection.(4) The African Development Foundation has a unique

congressional mandate to empower the poor to participate fullyin development and to increase opportunities for gainfulemployment, poverty alleviation, and more equitable incomedistribution in sub-Saharan Africa. The African DevelopmentFoundation has worked successfully to enhance the role ofwomen as agents of change, strengthen the informal sectorwith an emphasis on supporting micro and small sized enter-prises, indigenous technologies, and mobilizing local financing.

The African Development Foundation should develop and imple-ment strategies for promoting participation in the socioeconomicdevelopment process of grassroots and informal sector groupssuch as nongovernmental organizations, cooperatives, artisans,and traders into the programs and initiatives established underthis title.(c) ADDITIONALAUTHORITIES.

(1) IN GENERAL.Section 496(h) of the Foreign AssistanceAct of 1961 (22 U.S.C. 2293(h)) is amended

(A) by redesignating paragraph (3) as paragraph (4);and

(B) by inserting after paragraph (2) the following:(3) DEMOCRATIZATION AND CONFLICT RESOLUTION CAPABILI-

TIES.Assistance under this section may also include programassistance

(A) to promote democratization, good governance, andstrong civil societies in sub-Saharan Africa; and

(B) to strengthen conflict resolution capabilities ofgovernmental, intergovernmental, and nongovernmentalentities in sub-Saharan Africa..(2) CONFORMING AMENDMENT.Section 496(h)(4) of such

Act, as amended by paragraph (1), is further amended bystriking paragraphs (1) and (2) in the first sentence andinserting paragraphs (1), (2), and (3).

SEC. 128. ASSISTANCE FROM UNITED STATES PRIVATE SECTOR TO

PREVENT AND REDUCE HIV/AIDS IN SUB-SAHARAN

AFRICA.

It is the sense of the Congress that United States businessesshould be encouraged to provide assistance to sub-Saharan Africancountries to prevent and reduce the incidence of HIV/AIDS in

sub-Saharan Africa. In providing such assistance, United Statesbusinesses should be encouraged to consider the establishment ofan HIV/AIDS Response Fund in order to provide for coordinationamong such businesses in the collection and distribution of theassistance to sub-Saharan African countries.

SEC. 129. SENSE OF THE CONGRESS RELATING TO HIV/AIDS CRISIS

IN SUB-SAHARAN AFRICA.

(a) FINDINGS.The Congress finds the following:(1) Sustained economic development in sub-Saharan Africa

depends in large measure upon successful trade with and for-eign assistance to the countries of sub-Saharan Africa.

(2) The HIV/AIDS crisis has reached epidemic proportionsin sub-Saharan Africa, where more than 21,000,000 men,women, and children are infected with HIV.

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(3) Eighty-three percent of the estimated 11,700,000 deathsfrom HIV/AIDS worldwide have been in sub-Saharan Africa.

(4) The HIV/AIDS crisis in sub-Saharan Africa is weak-ening the structure of families and societies.

(5)(A) The HIV/AIDS crisis threatens the future of theworkforce in sub-Saharan Africa.

(B) Studies show that HIV/AIDS in sub-Saharan Africamost severely affects individuals between the ages of 15 and49the age group that provides the most support for the econo-mies of sub-Saharan African countries.

(6) Clear evidence demonstrates that HIV/AIDS is destruc-

tive to the economies of sub-Saharan African countries.(7) Sustained economic development is critical to creatingthe public and private sector resources in sub-Saharan Africanecessary to fight the HIV/AIDS epidemic.(b) SENSE OF THE CONGRESS.It is the sense of the Congress

that(1) addressing the HIV/AIDS crisis in sub-Saharan Africa

should be a central component of United States foreign policywith respect to sub-Saharan Africa;

(2) significant progress needs to be made in preventingand treating HIV/AIDS in sub-Saharan Africa in order to sus-tain a mutually beneficial trade relationship between theUnited States and sub-Saharan African countries; and

(3) the HIV/AIDS crisis in sub-Saharan Africa is a globalthreat that merits further attention through greatly expandedpublic, private, and joint public-private efforts, and throughappropriate United States legislation.

SEC. 130. STUDY ON IMPROVING AFRICAN AGRICULTURAL PRACTICES.

(a) IN GENERAL.The Secretary of Agriculture, in consultationwith American Land Grant Colleges and Universities and not-for-profit international organizations, is authorized to conduct a2-year study on ways to improve the flow of American farmingtechniques and practices to African farmers. The study shall includean examination of ways of improving or utilizing

(1) knowledge of insect and sanitation procedures;(2) modern farming and soil conservation techniques;(3) modern farming equipment (including maintaining the

equipment);(4) marketing crop yields to prospective purchasers; and(5) crop maximization practices.

The Secretary of Agriculture shall submit the study to the Com-mittee on Agriculture, Nutrition, and Forestry of the Senate andthe Committee on Agriculture of the House of Representativesnot later than September 30, 2001.

(b) LAND GRANT COLLEGES AND NOT-FOR-PROFIT INSTITU-TIONS.In conducting the study under subsection (a), the Secretaryof Agriculture is encouraged to consult with American Land GrantColleges and not-for-profit international organizations that havefirsthand knowledge of current African farming practices.

SEC. 131. SENSE OF THE CONGRESS REGARDING EFFORTS TO COMBAT

DESERTIFICATION IN AFRICA AND OTHER COUNTRIES.

(a) FINDINGS.The Congress finds that(1) desertification affects approximately one-sixth of the

worlds population and one-quarter of the total land area;

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(2) over 1,000,000 hectares of Africa are affected bydesertification;

(3) dryland degradation is an underlying cause of recurrentfamine in Africa;

(4) the United Nations Environment Programme estimatesthat desertification costs the world $42,000,000,000 a year,not including incalculable costs in human suffering; and

(5) the United States can strengthen its partnershipsthroughout Africa and other countries affected bydesertification, help alleviate social and economic crises causedby misuse of natural resources, and reduce dependence on

foreign aid, by taking a leading role to combat desertification.(b) SENSE OF THE CONGRESS.It is the sense of the Congressthat the United States should expeditiously work with the inter-national community, particularly Africa and other countries affectedby desertification, to

(1) strengthen international cooperation to combatdesertification;

(2) promote the development of national and regionalstrategies to address desertification and increase public aware-ness of this serious problem and its effects;

(3) develop and implement national action programs thatidentify the causes of desertification and measures to addressit; and

(4) recognize the essential role of local governments andnongovernmental organizations in developing and imple-menting measures to address desertification.

TITLE IITRADE BENEFITS FORCARIBBEAN BASIN

Subtitle ATrade Policy for CaribbeanBasin Countries

SEC. 201. SHORT TITLE.

This title may be cited as the United States-Caribbean BasinTrade Partnership Act.

SEC. 202. FINDINGS AND POLICY.

(a) FINDINGS.Congress makes the following findings:(1) The Caribbean Basin Economic Recovery Act (in thistitle referred to as CBERA) represents a permanent commit-ment by the United States to encourage the development ofstrong democratic governments and revitalized economies inneighboring countries in the Caribbean Basin.

(2) In 1998, Hurricane Mitch and Hurricane Georges dev-astated areas in the Caribbean Basin region, killing more than10,000 people and leaving 3,000,000 homeless.

(3) The total direct impact of Hurricanes Mitch and Georgeson Honduras, Nicaragua, the Dominican Republic, El Salvador,and Guatemala amounts to $4,200,000,000, representing asevere loss to income levels in this underdeveloped region.

(4) In addition to short term disaster assistance, UnitedStates policy toward the region should focus on expanding

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international trade with the Caribbean Basin region as anenduring solution for successful economic growth and recovery.

(5) Thirty-four democratically elected leaders agreed at the1994 Summit of the Americas to conclude negotiation of aFree Trade Area of the Americas (in this title referred toas FTAA) by the year 2005.

(6) The economic security of the countries in the CaribbeanBasin will be enhanced by the completion of the FTAA.

(7) Offering temporary benefits to Caribbean Basin coun-tries will preserve the United States commitment to CaribbeanBasin beneficiary countries, promote the growth of free enter-prise and economic opportunity in these neighboring countries,and thereby enhance the national security interests of theUnited States.

(8) Given the greater propensity of countries located inthe Western Hemisphere to use United States components andto purchase United States products compared to other countries,increased trade and economic activity between the UnitedStates and countries in the Western Hemisphere will createnew jobs in the United States as a result of expanding exportopportunities.(b) POLICY.It is the policy of the United States

(1) to offer Caribbean Basin beneficiary countries willingto prepare to become a party to the FTAA or another freetrade agreement, tariff treatment essentially equivalent to thataccorded to products of NAFTA countries for certain productsnot currently eligible for duty-free treatment under the CBERA;

and(2) to seek the participation of Caribbean Basin beneficiary

countries in the FTAA or another free trade agreement atthe earliest possible date, with the goal of achieving full partici-pation in such agreement not later than 2005.

SEC. 203. DEFINITIONS.

In this title:(1) NAFTA.The term NAFTA means the North Amer-

ican Free Trade Agreement entered into between the UnitedStates, Mexico, and Canada on December 17, 1992.

(2) NAFTA COUNTRY.The term NAFTA country meansany country with respect to which the NAFTA is in force.

(3) WTO AND WTO MEMBER.The terms WTO and WTOmember have the meanings given those terms in section 2

of the Uruguay Round Agreements Act (19 U.S.C. 3501).

Subtitle BTrade Benefits for CaribbeanBasin Countries

SEC. 211. TEMPORARY PROVISIONS TO PROVIDE ADDITIONAL TRADE

BENEFITS TO CERTAIN BENEFICIARY COUNTRIES.

(a) TEMPORARY PROVISIONS.Section 213(b) of the CaribbeanBasin Economic Recovery Act (19 U.S.C. 2703(b)) is amended toread as follows:

(b) IMPORT-SENSITIVEARTICLES.(1) IN GENERAL.Subject to paragraphs (2) through (5),

the duty-free treatment provided under this title does not applyto

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(A) textile and apparel articles which were not eligiblearticles for purposes of this title on January 1, 1994, asthis title was in effect on that date;

(B) footwear not designated at the time of the effectivedate of this title as eligible articles for the purpose ofthe generalized system of preferences under title V of theTrade Act of 1974;

(C) tuna, prepared or preserved in any manner, inairtight containers;

(D) petroleum, or any product derived from petroleum,provided for in headings 2709 and 2710 of the HTS;

(E) watches and watch parts (including cases, brace-lets, and straps), of whatever type including, but not limitedto, mechanical, quartz digital or quartz analog, if suchwatches or watch parts contain any material which is theproduct of any country with respect to which HTS column2 rates of duty apply; or

(F) articles to which reduced rates of duty apply undersubsection (h).(2) TRANSITION PERIOD TREATMENT OF CERTAIN TEXTILE

AND APPAREL ARTICLES.(A) ARTICLES COVERED.During the transition period,

the preferential treatment described in subparagraph (B)shall apply to the following articles:

(i) APPAREL ARTICLES ASSEMBLED IN ONE OR MORECBTPA BENEFICIARY COUNTRIES.Apparel articlesassembled in one or more CBTPA beneficiary countriesfrom fabrics wholly formed and cut in the UnitedStates, from yarns wholly formed in the United States,(including fabrics not formed from yarns, if such fabricsare classifiable under heading 5602 or 5603 of theHTS and are wholly formed and cut in the UnitedStates) that are

(I) entered under subheading 9802.00.80 ofthe HTS; or

(II) entered under chapter 61 or 62 of theHTS, if, after such assembly, the articles wouldhave qualified for entry under subheading9802.00.80 of the HTS but for the fact that thearticles were embroidered or subjected to stone-washing, enzyme-washing, acid washing, perma-pressing, oven-baking, bleaching, garment-dyeing,

screen printing, or other similar processes.(ii) APPAREL ARTICLES CUT AND ASSEMBLED IN ONEOR MORE CBTPA BENEFICIARY COUNTRIES.Apparel arti-cles cut in one or more CBTPA beneficiary countriesfrom fabric wholly formed in the United States fromyarns wholly formed in the United States (includingfabrics not formed from yarns, if such fabrics are classi-fiable under heading 5602 or 5603 of the HTS andare wholly formed in the United States), if such articlesare assembled in one or more such countries withthread formed in the United States.

(iii) CERTAIN KNIT APPAREL ARTICLES.(I) Apparelarticles knit to shape (other than socks provided forin heading 6115 of the HTS) in a CBTPA beneficiarycountry from yarns wholly formed in the United States,

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and knit apparel articles (other than t-shirts describedin subclause (III)) cut and wholly assembled in oneor more CBTPA beneficiary countries from fabricformed in one or more CBTPA beneficiary countriesor the United States from yarns wholly formed inthe United States (including fabrics not formed fromyarns, if such fabrics are classifiable under heading5602 or 5603 of the HTS and are formed in one ormore CBTPA beneficiary countries), in an amount notexceeding the amount set forth in subclause (II).

(II) The amount referred to in subclause (I) is

(aa) 250,000,000 square meter equivalentsduring the 1-year period beginning on October 1,2000, increased by 16 percent, compoundedannually, in each succeeding 1-year period throughSeptember 30, 2004; and

(bb) in each 1-year period thereafter throughSeptember 30, 2008, the amount in effect for the1-year period ending on September 30, 2004, orsuch other amount as may be provided by law.(III) T-shirts, other than underwear, classifiable

under subheadings 6109.10.00 and 6109.90.10 of theHTS, made in one or more CBTPA beneficiary coun-tries from fabric formed in one or more CBTPA bene-ficiary countries from yarns wholly formed in theUnited States, in an amount not exceeding the amountset forth in subclause (IV).

(IV) the amount referred to in subclause (III)is

(aa) 4,200,000 dozen during the 1-year periodbeginning on October 1, 2000, increased by 16percent, compounded annually, in each succeeding1-year period through September 30, 2004; and

(bb) in each 1-year period thereafter, theamount in effect for the 1-year period ending onSeptember 30, 2004, or such other amount as maybe provided by law.(V) It is the sense of the Congress that the Con-

gress should determine, based on the record of expan-sion of exports from the United States as a result

of the preferential treatment of articles under thisclause, the percentage by which the amount providedin subclauses (II) and (IV) should be compounded forthe 1-year periods occurring after the 1-year periodending on September 30, 2004.

(iv) CERTAIN OTHER APPAREL ARTICLES.(I) Sub-ject to subclause (II), any apparel article classifiableunder subheading 6212.10 of the HTS, if the articleis both cut and sewn or otherwise assembled in theUnited States, or one or more of the CBTPA beneficiarycountries, or both.

(II) During the 1-year period beginning on October1, 2001, and during each of the six succeeding 1-yearperiods, apparel articles described in subclause (I) ofa producer or an entity controlling production shall

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be eligible for preferential treatment under subpara-graph (B) only if the aggregate cost of fabric compo-nents formed in the United States that are used inthe production of all such articles of that produceror entity during the preceding 1-year period is at least75 percent of the aggregate declared customs valueof the fabric contained in all such articles of thatproducer or entity that are entered during the pre-ceding 1-year period.

(III) The United States Customs Service shalldevelop and implement methods and procedures to

ensure ongoing compliance with the requirement setforth in subclause (II). If the Customs Service findsthat a producer or an entity controlling productionhas not satisfied such requirement in a 1-year period,then apparel articles described in subclause (I) of thatproducer or entity shall be ineligible for preferentialtreatment under subparagraph (B) during any suc-ceeding 1-year period until the aggregate cost of fabriccomponents formed in the United States used in theproduction of such articles of that producer or entityin the preceding 1-year period is at least 85 percentof the aggregate declared customs value of the fabriccontained in all such articles of that producer or entitythat are entered during the preceding 1-year period.

(v) APPAREL ARTICLES ASSEMBLED FROM FABRICSOR YARN NOT WIDELY AVAILABLE IN COMMERCIAL QUAN-TITIES.(I) Apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one ormore CBTPA beneficiary countries, from fabrics or yarnthat is not formed in the United States or in oneor more CBTPA beneficiary countries, to the extentthat apparel articles of such fabrics or yarn wouldbe eligible for preferential treatment, without regardto the source of the fabrics or yarn, under Annex401 of the NAFTA.

(II) At the request of any interested party, thePresident is authorized to proclaim additional fabricsand yarn as eligible for preferential treatment undersubclause (I) if

(aa) the President determines that such fab-rics or yarn cannot be supplied by the domestic

industry in commercial quantities in a timelymanner;(bb) the President has obtained advice

regarding the proposed action from the appropriateadvisory committee established under section 135of the Trade Act of 1974 (19 U.S.C. 2155) andthe United States International Trade Commis-sion;

(cc) within 60 days after the request, thePresident has submitted a report to the Committeeon Ways and Means of the House of Representa-tives and the Committee on Finance of the Senatethat sets forth the action proposed to be proclaimedand the reasons for such actions, and the adviceobtained under division (bb);

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(dd) a period of 60 calendar days, beginningwith the first day on which the President hasmet the requirements of division (cc), has expired;and

(ee) the President has consulted with suchcommittees regarding the proposed action duringthe period referred to in division (cc).(vi) HANDLOOMED, HANDMADE, AND FOLKLORE

ARTICLES.A handloomed, handmade, or folklorearticle of a CBTPA beneficiary country identified undersubparagraph (C) that is certified as such by the com-

petent authority of such beneficiary country.(vii) SPECIAL RULES.(I) EXCEPTION FOR FINDINGS AND TRIM-

MINGS.(aa) An article otherwise eligible for pref-erential treatment under this paragraph shall notbe ineligible for such treatment because the articlecontains findings or trimmings of foreign origin,if such findings and trimmings do not exceed 25percent of the cost of the components of the assem-bled product. Examples of findings and trimmingsare sewing thread, hooks and eyes, snaps, buttons,bow buds, decorative lace, trim, elastic strips, zip-pers, including zipper tapes and labels, and othersimilar products. Elastic strips are consideredfindings or trimmings only if they are each lessthan 1 inch in width and are used in the produc-tion of brassieres.

(bb) In the case of an article described inclause (ii) of this subparagraph, sewing threadshall not be treated as findings or trimmings underthis subclause.

(II) CERTAIN INTERLINING.(aa) An articleotherwise eligible for preferential treatment underthis paragraph shall not be ineligible for suchtreatment because the article contains certaininterlinings of foreign origin, if the value of suchinterlinings (and any findings and trimmings) doesnot exceed 25 percent of the cost of the componentsof the assembled article.

(bb) Interlinings eligible for the treatmentdescribed in division (aa) include only a chest type

plate, hymo piece, or sleeve header, of wovenor weft-inserted warp knit construction and ofcoarse animal hair or man-made filaments.

(cc) The treatment described in this subclauseshall terminate if the President makes a deter-mination that United States manufacturers areproducing such interlinings in the United Statesin commercial quantities.

(III) DE MINIMIS RULE.An article that wouldotherwise be ineligible for preferential treatmentunder this paragraph because the article containsfibers or yarns not wholly formed in the UnitedStates or in one or more CBTPA beneficiary coun-tries shall not be ineligible for such treatmentif the total weight of all such fibers or yarns is

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not more than 7 percent of the total weight ofthe good. Notwithstanding the preceding sentence,an apparel article containing elastomeric yarnsshall be eligible for preferential treatment underthis paragraph only if such yarns are whollyformed in the United States.

(IV) SPECIAL ORIGIN RULE.An article other-wise eligible for preferential treatment underclause (i) or (ii) of this subparagraph shall notbe ineligible for such treatment because the articlecontains nylon filament yarn (other than elas-

tomeric yarn) that is classifiable under subheading5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60,5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90,5402.51.00, or 5402.61.00 of the HTS duty-freefrom a country that is a party to an agreementwith the United States establishing a free tradearea, which entered into force before January 1,1995.(viii) TEXTILE LUGGAGE.Textile luggage

(I) assembled in a CBTPA beneficiary countryfrom fabric wholly formed and cut in the UnitedStates, from yarns wholly formed in the UnitedStates, that is entered under subheading9802.00.80 of the HTS; or

(II) assembled from fabric cut in a CBTPA

beneficiary country from fabric wholly formed inthe United States from yarns wholly formed inthe United States.

(B) PREFERENTIAL TREATMENT.Except as providedin subparagraph (E), during the transition period, the arti-cles to which this subparagraph applies shall enter theUnited States free of duty and free of any quantitativerestrictions, limitations, or consultation levels.

(C) HANDLOOMED, HANDMADE, AND FOLKLORE ARTI-CLES.For purposes of subparagraph (A)(vi), the Presidentshall consult with representatives of the CBTPA beneficiarycountries concerned for the purpose of identifying particulartextile and apparel goods that are mutually agreed uponas being handloomed, handmade, or folklore goods of akind described in section 2.3(a), (b), or (c) of the Annex

or Appendix 3.1.B.11 of the Annex.(D) PENALTIES FOR TRANSSHIPMENTS.(i) PENALTIES FOR EXPORTERS.If the President

determines, based on sufficient evidence, that anexporter has engaged in transshipment with respectto textile or apparel articles from a CBTPA beneficiarycountry, then the President shall deny all benefitsunder this title to such exporter, and any successorof such exporter, for a period of 2 years.

(ii) PENALTIES FOR COUNTRIES.Whenever thePresident finds, based on sufficient evidence, thattransshipment has occurred, the President shallrequest that the CBTPA beneficiary country or coun-tries through whose territory the transshipment hasoccurred take all necessary and appropriate actions

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to prevent such transshipment. If the President deter-mines that a country is not taking such actions, thePresident shall reduce the quantities of textile andapparel articles that may be imported into the UnitedStates from such country by the quantity of the trans-shipped articles multiplied by 3, to the extent con-sistent with the obligations of the United States underthe WTO.

(iii) TRANSSHIPMENT DESCRIBED.Transshipmentwithin the meaning of this subparagraph has occurredwhen preferential treatment under subparagraph (B)

has been claimed for a textile or apparel article onthe basis of material false information concerning thecountry of origin, manufacture, processing, or assemblyof the article or any of its components. For purposesof this clause, false information is material if disclosureof the true information would mean or would havemeant that the article is or was ineligible for pref-erential treatment under subparagraph (B).(E) BILATERAL EMERGENCY ACTIONS.

(i) IN GENERAL.The President may take bilateralemergency tariff actions of a kind described in section4 of the Annex with respect to any apparel articleimported from a CBTPA beneficiary country if theapplication of tariff treatment under subparagraph (B)to such article results in conditions that would because for the taking of such actions under such section4 with respect to a like article described in the same8-digit subheading of